United States: Environment

Carbon Ridge founder and CEO Chase Dwyer discusses how his company is tackling one of the world's hardest-to-abate industries through modular onboard carbon capture technology that reduces vessel emissions...

On July 21, the California Air Resources Board (“CARB”) held a public workshop to provide updates on the implementation of SB 253, the Climate Corporate Data Accountability Act, which requires U.S.-based entities doing business in California with more than $1 billion in annual revenue to disclose their Scope 1, 2 and 3 greenhouse gas (“GHG”) emissions. During the workshop, CARB introduced a revised reporting deadline, a phased-in approach to Scope 3 reporting, changes to the treatment of insurance companies, and proposed assurance requirements that would apply from 2027 and beyond.

California's air quality regulator has unveiled its approach to phased Scope 3 emissions reporting under SB 253, beginning with just five of fifteen categories in 2027 while leaving full implementation without a committed timeline. The proposal introduces materiality-based exclusions, dual Scope 2 calculation methods, and a five-standard assurance framework that raises questions about engagement scope and cost implications for covered entities.